InvestMacro

Article By RoboForex.com

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.6459; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the resistance area at 0.6490 and then resume moving downwards to reach 0.6305. Another signal to confirm further descending movement is the price’s rebounding from the resistance level. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 0.6555. In this case, the pair may continue growing towards 0.6645.

XAGUSD, “Silver vs US Dollar”

XAGUSD is trading at 16.61; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 16.95 and then resume moving downwards to reach 15.75. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 17.45. In this case, the pair may continue growing towards 18.25.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3786; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.3760 and then resume moving upwards to reach 1.3965. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 1.3615. In this case, the pair may continue falling towards 1.3535.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By Alpari.com

By Alpari.com

By TheTechnicalTraders – It is another blood bath in the markets with everything down, including TLT (bonds) and gold. Safe havens falling with stocks is not a good sign as people are not comfortable owning anything, even the safe havens, and this to me is a very bearish sign.

Now, with that said, this is one day one of this type of price action and one day does not constitute a new trend or change the game, but if we start seeing more of this happen, we could be on the verge of the bear market we have all been expecting to show it ugly face.

The SP500 (SPY) is down 19.5% from the all-time high we saw just three weeks ago, and the general bias for most people is once the market is down 20% that is a new bear market. I can’t entirely agree with that general rule. Still, a lot of damage is happening to the charts. If price lingers down here or trades sideways for a few months I will see it as a new bear market consolidation before it heads lower, and we start what could be very deep market selloff and test 2100 on the SP500 index (SPY $210) for the next leg down looking forward several months.

20% Stock Market Correction Are Not Bearish

Just because the markets have a deep correction of 20% does not mean its game over for stocks. Just take a look at the chart below on what happened the last time the market corrected 20%. As you can see, they were the biggest and best investor opportunities over the past 12 years. Today, my friend called and said they heard on the news that we are now officially in a bear market, and what should he do?

20% Corrections Can Turn Into a Bear Market – Be Ready

The SP500 fell 20% in 2001 and again from the 2007 high its lows, then bounce 10% – 14 over the next few months before rolling over to start its first bear market leg. I feel something similar will happen this time, which would put us a few months before the price should test these lows again and breakdown to give us optimal time to reposition our long term portfolio.

Once we do start a bear market, you will notice price moves very differently from what we have experienced over the past 12 years. How you trade now likely will be a struggle to make money. If you try to trade bonds, they are relatively tricky because of how they move during a bear market. The stock market can fall for a year, and bonds are still trading at or below the price they were when the bear market started. This different price action is what happened in 2001-2002, and again in 2008.

Bonds Go Ballistic

Bonds also take on the price action similar to how the VIX trades with violent price spikes only to fade back down again quickly, and this generally happens near the end of a bear market, or extreme selloff like we are in now. Heck bonds (TLT) jumped 30% just in the past few weeks, we caught it, but most traders missed this move. You need to understanding market sentiment and how to trade bear market type price action because that is how the market is moving this week, and trading/chart patterns become more sentiment-driven than logical trading setups and trades become counterintuitive.

I also traded GDXJ for a 9.5% gain and closed that position at open for the high tick with my followers, and we didn’t follow my proven trading rules for price targets, trailing stops, and reading the market sentiment we could be down over 30% today which I know many traders are simply because they lack control of their trading (no defined rules, fall in love with positions). I’ll be doing a detailed gold and gold miners article so stay tuned!

Be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!

Concluding Thoughts:

I share this analysis, not to scare you, but let you know where we stand. The stock market is treading on thin ice, and if/when it breaks down, a new bear market will have started. Remember, we are still in a bull market, but the coronavirus is stopping businesses, which means earnings will be poor, and that is why stocks are falling. Investors know stocks are worth less money if they make less money; it is that simple.

The type of market condition I think we have entered could be here for a while, a year or three, and it’s going to be a traders market, which means you must have a trading strategy, plan your trades, and trade your plan. It’s amazing how simple a few trading rules are written down on paper can save you thousands of dollars a year from locking in gains, or cutting losses. I have this mini trading strategy mastery course if you want to take control of your trades and override your emotional issues. It’s easy to hold winners until they turn into losers, taking to large of a position, or maybe you have masted the art of buying high and selling low repeatedly? Yikes! It happens to most traders, and it can easily be overcome with a logical game plan I cover in the crash course, pun intended ?

Someone yesterday I spoke with said that in the USA alone already had 10,000 people die just from common influenza, yet here we are freaking out over 17 dead in the USA. Sure, its bad news, but the common sicknesses for older citizens makes coronavirus seems a little blown out of proportion. There are conspiracy theories out there and this could be bioweapon which is scary and I am no expert in this field but my sources are not concerned with the Conornavirus. I want to think a cure gets found soon, and if so, the markets will rebound with a vengeance, and we can relax.

In short, if you have lost money with your trading account this year, holding some big losing trades that were big winners just a couple of weeks ago, I think it’s worth joining my trading newsletter so you can stay on top of the markets. I take the loud, emotional, and complex market and deliver simple common sense commentary and a couple of winning trades each month.

My trading is nothing extreme or crazy exciting because I’m not an adrenaline trading junky. I only want to grow my entire portfolio 2-4% a month with a couple of conservative ETF trades and make a 22%-48% return on my capital without the stress of being caught up in this type of market and feeling like I always need to be in a trade.

Happy Trading!

Chris Vermeulen
Chief Market Strategist

TheTechnicalTraders.com

By TheTechnicalTraders – When it comes to our Adaptive Dynamic Learning (ADL) predictive modeling system, we get asked questions from our friends and followers about how it could predict a virus event or how it could predict a price event so far out into the future.  The truth of the matter is the ADL predictive modeling system doesn’t predict unknown virus, banking or other types of events.

What it does do, quite well we might add, is identify historically accurate price events (almost like unique DNA markers) and attempts to identify future price events that align with recent price bar (DNA) setups.  In other words, it maps the markets highest probability outcomes by studying past price activity and using a unique DNA-like mapping system.  Once this analysis is complete for any chart, we can ask it what is likely to happen in the future.

On July 8, 2019, our researchers did exactly that and posted an article regarding our findings that many people continue to write us about.  Some, at first, in total disbelief that Crude Oil could fall to levels below $40 ever again and others that wanted to know how we came up with these numbers.  We set our ADL system to show us what is expected on a Monthly Crude Oil chart going forward and it draws the likely outcome and volatility (highs & Lows).

Here is a link to the original article: https://www.thetechnicaltraders.com/predictive-modeling-suggest-oil-headed-much-lower-by-early-2020/

This screen capture from the original July 2019 article clearly states…

If our ADL predictive modeling is correct, we will see rotation between $47 and $64 over the next 3+ months before a breakdown in price hits in November 2019.  This will be followed by two fairly narrow price range months (December 2019 and January 2020) where oil prices will tighten near $45 to $50.  After that tightening, we believe an extremely volatile price move will happen in February through April 2020 that could see oil prices trade as low as $22 and as high as $51 over a two to three-month span.

The most critical component of this early research is the statement we have timed perfectly with our system was “we believe an extremely volatile price move will happen in February through April 2020” and the following price predictions.

The ADL predictive modeling system provided us with a hint that volatility would skyrocket throughout this time in Crude Oil. And, as we all know, this next Daily Crude Oil chart highlights the incredible collapse from early January 2020 (near $65.00) to levels just below $50 in early February.  After that, the high price level was near $54.50 and the current low price level is $27.34.  We believe this downward price rotation in Crude Oil completely validates our earlier ADL predictive analysis.

Imagine having this type of forecast for our trading and investing!
Be sure to opt-in to our free market trend signals newsletter before closing this page so you don’t miss our next special report!

What’s next with the price of crude oil?

Based on short-term Fibonacci price momentum targets we could see fall as low as $17 per barrel, but this price target will change dramatically over the next few days depending on if oil bounces higher from here it is now.

If our research is correct, Crude oil may find a bottom somewhere near $17 to $24, the potential rally back up to somewhere above $37~41 ppb before staging another massive selloff.  The massive volatility suggested by the ADL system also suggests a broad price range over the next 60+ days.

Thus, we believe Crude Oil will attempt to form a bottom below $30, then attempt a brief rally to “fill the gap” (or partially fill the gap).  After that, supply-side economics will take over and Crude Oil should begin to move back towards the to $30 price level again – just as our ADL predictive modeling system suggested.

As of today, we are getting dozens of emails asking about what we see for the US major markets and global markets with our systems.  Everyone wants to know “what’s next?”.  Most of that research is delivered to our active subscribers/members and you can gain access to that information simply by visiting my website. You really don’t want to miss these next huge moves.

As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for short-term swing traders.

Visit my ETF Wealth Building Newsletter and if you like what I offer, and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

Chris Vermeulen

TheTechnicalTraders.com

Forex trading is one of the best ways to make money from home. Its main advantage is that it is easy to get into and, if you do it right, the overall cost of entry is very low. The question that arises is, how do you keep your living and business expenses low as you get your business off the ground? Below, we will look at some tips.

Clothes

One of the areas people who commute to work spend a lot of money is in buying clothes for work. When starting a home business, that might not be necessary as you will most likely be working in casual clothes. Most people working from home only need one or two outfits in case they need to meet clients or attend conferences.

Two of the costs most people do not think about are dry cleaning as well as tailoring costs. These two costs can accumulate if you wear a different outfit to the office every day. When running your forex business from home, you do not need professional dry-cleaning services; all you have to do is toss your clothes in the washer while you work.

Food

Eating out can be expensive. This is what most people who commute to work are forced to do. For those running their forex business at home, there are so many different ways of saving on food. You could start by rationing. It might seem odd but cooking larger meals and then dividing them into small rations could save you money and time. Also, cooking at home is a lot cheaper than going to a restaurant or a hot dog stand.

If you work at home, you can also save on snacks and coffee. You have food at home, which eliminates the need for snacks, and you can brew your own coffee, which is another area where you could save a lot of money.

Get a Shared Server

Forex trading needs a lot of computing power. If you are new at forex trading, you could start by using a shared server. Shared servers are a lot cheaper than dedicated or virtual private servers. Servers can eat into your business costs and even though getting a server leans towards business expenses, it is still something that you have to consider when setting up your business.

Get a Smaller House or Apartment

Since you will be working from home and are just starting out, there is no need for a huge house or apartment. You could get a smaller house and have your work area set up on one corner. You could make it feel more like an office by decorating your work area as one and ensuring that you do not use that work area for anything else. If you do this, you could save a ton of money on your living expenses.

Transportation

Transportation is easily one of the most expensive aspects of working in an office. Every day, commuters spend countless hours and dollars commuting to and from work, spending up to a few hours stuck in traffic jams. When setting up your forex trading business at home, there is no need for all that. You could get a single car for you and your partner and use it during off-peak hours. Not only will this leave you with time to do other things, but it will also save you money on gas expenses and business and working hours are also saved.

If you go down this route, you also do not have to worry about parking fees, tolls, vehicle maintenance or any other costs associated with commuting to and from work.

Save on Electricity

People who want to get into forex trading often think that the more computers they have, the better they will perform. While this might be true for seasoned professionals, it does not usually apply to people just starting out and it could lead to huge power bills. To cut on your power bills, get just the number of computers you need.

Another idea is to switch to solar panels since electricity is expensive in many areas. Semper Solaris has solar installation options for those who need to go off-grid or cut their electricity costs. Their systems are installed by professionals to ensure you have the power you need for all your computers and appliances.

In reducing your energy costs, you might also want to get energy-efficient appliances. Making changes like using LED lights should save you a few dollars on your power bill.

Get the Internet Option You Need

Even though trading needs fast internet, you do not need to get the highest tier, which is usually the most expensive. The most important metric is ping. This is the amount of time it takes for a server to receive a request and send a response back. A low ping, usually below 5 milliseconds is best, even if your internet speed is in the 10-15mbps range.

Conclusion

There are so many areas where you can save money when starting a forex trading business at home. The most important thing is to align potential savings with your ability to do your work rather than starving yourself to save a few dollars.

By Taylor Wilman

By Orbex

US Coronavirus Cases Take Their Toll

As the total number of COVID-19 cases in the United States continues to rise, the White House has started taking baby steps to tackle the serious effect the outbreak is going to have on the economy.

The Administration held an emergency meeting to discuss taking fiscal actions to help the private and public sectors weather the storm, Trump announced at a press conference in Capitol Hill yesterday.

Despite considering cutting tax rates to zero, the US President called on the Fed once again. Trump believes fiscal and monetary measures are essential in order to stimulate the economy.

True to form, the President went off against Fed Chair Powell on Twitter, stating:

Although a collective measure seems to be the only solution at the moment, how this is going to help the economy is a different story. We’ve already seen the Fed cutting way ahead of their next meeting and before the White House even made a statement on the matter. And they could cut further ahead of the next FOMC on March 18.

But will cutting rates help while liquidity injections continue, or will it lead to a blow? Rates must be closely watched because once the US goes negative, that could be a one-way ticket to despair, as the 1930s showed us.

BoE Cuts 50%, but Fiscal Measures Needed

On the other hand, just this morning, we saw the BoE cutting interest rates in a unanimous emergency move.

It seems that the Monetary Policy Committee’s decision to provide support on the back of the coronavirus crisis is going to boost lending. However, how this is likely to affect credit risk is still unknown.

With the central bank followed suit with a 50% basis point cut, the UK’s budget will now focus on short-term emergency needs. That said, there is market talk that the government might need to also step in to add extra liquidity.

Undoubtedly, fiscal policy is way more important at this stage than monetary policy is. This seems to suggest that whatever medium-term bounce is seen on the pound might be only temporary. If and when the government steps up its game, this should change the game-play.

Will the ECB Cut Next?

The need for financial stability in an extremely high volatile environment will likely force the ECB to cut rates too, tomorrow.

However, the European bank doesn’t have as much room to the downside as the Fed, BoE, RBA or BoC for that matter. A ½ percent cut could really hurt the euro.

BoJ Ready to Take Action

BoJ’s Kuroda is facing the same problem as Lagarde – how much and when rather than if.

The Japanese Governor warned that the banks “will not hesitate to take appropriate policy due to the spread of the coronavirus” only yesterday. The biggest concern at this moment lays with governments.

By Orbex

By Orbex

Euro Pulls Back at Support Ahead of ECB Meeting

EURUSD continues its retreat as price action slipped to the support area. There is also a confluence of the rising trend line, indicating that there is strong support at the 1.1300 region. If price action breaks below this level, then we expect the 1.1200 handle as the next downside target. To the upside, the 1.1500 level will be critical for price to continue further to the upside.

GBPUSD Gives Back Gains from Earlier in the Week

Price action in the cable saw the sterling falling sharply against the dollar. The declines came after price briefly tested the 1.3200 level. The break down below the initial support at 1.2960 has pushed prices lower below the trend line. If this continues, we expect GBPUSD to slip lower to 1.2858. But with the Stochastics oscillator moving from the oversold levels, we could see some upside minor correction back to 1.2960.

Oil Prices Rebound as Markets Digest Price Wars

Crude oil prices are recovering from the sell-off from Monday. Price action is up over 12% on the day after WTI crude oil fell to lows of 28.00. The resistance level at 41.00 will be the upside target for now. However, prices are consolidating into a bearish flag pattern. This raises the risk of a continuation to the downside, bringing the 28.00 level as a critical price level.

XAUUSD Holds Steady at Support

Gold prices are down over 1% on an intraday basis on Tuesday. The declines come amid heightened market volatility. Price action fell to the support area of 1650 as expected and is currently rebounding. We expect price action to hold above this level in the short term. A lower high off 1650 will probably suggest that the upside is coming to an end. However, for this to be confirmed, XAUUSD will need to then break past the 1650 handle.

By Orbex

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD was quickly growing to correct the previous downtrend and almost reached 61.8% fibo at 1.3212 but then suddenly reversed and started a new pullback. Such market behavior doesn’t provide a clear understanding of what might happen later. One scenario implies that the pullback may transform into a descending wave and reach 1.2725 or even 61.8% fibo at 1.2700. Another scenario suggests that the instrument may stop falling and update its previous high. In this case, the next upside targets may be 61.8% and 76.0% fibo at 1.3212 and 1.3324 respectively.

In the H1 chart, the descending wave has already reached 61.8% fibo. The next downside target is 76.0% fibo at 1.2839. If the price fixes below this level, it may continue falling towards the low at 1.2725.

EURJPY, “Euro vs. Japanese Yen”

As we can see in the daily chart, the descending wave attempted to reach and test the long-term low at 115.86. If the price breaks the low and fixes below it, the pair may continue falling towards the post-correctional extension area between 138.2% and 161.8% fibo at 113.18 and 111.54 respectively. However, after reaching the low, the instrument rebounded from it, which may indicate a continuous sideways channel.

In the H1 chart, EURJPY is correcting to the upside, it has already reached 61.8% fibo and may yet grow towards 76.0% fibo at 119.78. If later the price reaches 120.95, the long-term tendency may reverse. The support is at 116.12.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After breaking the low of the first descending impulse and reaching the target at 1.1279, EURUSD is correcting towards 1.1356. After that, the instrument may form a new descending structure with the target at 1.1231.

GBPUSD, “Great Britain Pound vs US Dollar”

After finishing the first descending wave at 1.2876, GBPUSD is moving upwards to reach 1.3040. Later, the market may resume falling with the target at 1.2787.

USDCHF, “US Dollar vs Swiss Franc”

After completing the ascending wave at 0.9400, USDCHF is correcting towards 0.9300. Later, the market may start a new growth with the target at 0.9425.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has finished the ascending wave at 105.89. Possibly, today the pair may move downwards with the target at 103.18 and then form one more ascending structure towards 106.00.

AUDUSD, “Australian Dollar vs US Dollar”

After finishing the descending wave at 0.6465, AUDUSD is expected to start a new growth towards 0.6577. Later, the market may break this level and then continue trading upwards with the target at 0.6686.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has formed a new consolidation range around 72.04. Today, the pair may fall with the first target at 68.96 and then start a new correction to return to 72.04.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is consolidating around 1.3645; it has expanded the range up to 1.3795. Possibly, today the pair may form a new descending structure to reach 1.3583 and then resume growing with the target at 1.3690.

XAUUSD, “Gold vs US Dollar”

Gold is still consolidating around 1664.64. Possibly, the pair may expand the range down to 1639.71 and then form one more ascending structure to return to 1664.64.

BRENT

Brent has broken the descending channel to the upside. Today, the pair may grow towards 40.76. Later, the market may start a new decline to reach 37.25 and then resume trading upwards with the first target at 43.39.

BTCUSD, “Bitcoin vs US Dollar”

After completing the ascending impulse at 8125.00, BTCUSD is correcting towards 7777.00. The main scenario implies that the instrument may grow to return to 8125.00, break this level, and then continue trading upwards with the short-term target at 8400.00.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By Michael Kuchar – Once touted as a bubble bound to burst, not only have cryptocurrencies managed to prove this notion wrong, but have also widened their horizon to several sectors of business. Cryptocurrencies and their underlying blockchain technology find application in Travel, Hospitality, Health, and the Energy sector, among other avenues of business.

That being said, cryptocurrencies have the potential to reshape oil trade altogether – How exactly though? Read on to find out, and learn much more.

How Cryptocurrencies are reshaping Oil Trade

Inventory management in today’s date, witnesses several outdated processes. While some organizations have moved to better, and more efficient inventory management techniques, several others persist with outdated techniques. Using blockchain technology in due course of inventory management, could help oil companies manage possible infiltration, process reporting and tracking, decentralization, and data accuracy, among other potential uses.

While inventory management is one of the ways oil companies are, and should be using blockchain technology, there are several other potential uses of cryptocurrencies, and their underlying technology. Smart contracts could be a fascinating proposition, when it comes to oil trade. Given the sheer size of the industry, drawing up, and following up with contracts has always been an issue with contractors. The use of smart contracts in oil trade could be a God-sent for all involved parties.

Smart contracts could be drawn up between all involved parties, and each involved party would receive their share of a deal, in due accordance to the conditions stated in the smart contract. None of the involved parties would have to bother about non-compliance, as the smart contract/contract would ensure that either all parties receive their due, as per the specified date, or neither party receives their due, if any party defaults, when it comes to providing their intended service.

According to bitcoin profit review 2020, the potential of an oil-backed cryptocurrency is enormous. While there are already some oil-backed cryptocurrencies in circulation, at the time of writing, like OilCoin, and Bilur Energy, among others, these cryptocurrencies lack state support. The launch of a widespread, and acceptable oil-backed cryptocurrency could, and should see stability of (its) price, given the relative stability and volume of the market at this point of time.

The use of smart contracts would eliminate the slowness of execution of some facets of trade, and eradicate the necessity to pay a broker as well. It would also lead to greater transparency, and compliance, as all parties will be affected, if any party taking part in a transaction defaults, when it comes to providing the service they are hired/sought after to offer. Crude oil is one of the most exported products in the world, and tokenizing barrels of oil, held in reserve, would only give credibility to a token, thereby enhancing its stability. While Russia was planning on launching an oil-backed cryptocurrency of their own in 2019, called Neft-Coin, there is no news of the same yet. We should see significant developments with respect to oil-backed cryptocurrencies in the near future.

Conclusion on How Cryptocurrencies are reshaping the Oil Trade

As is the case with all new forms of technologies, blockchain technology and cryptocurrencies cannot be expected to revolutionize the oil industry immediately. Acceptance, and widespread integration takes time, and effort, as people are used to the methods and processes they have been making use of, in due course of their oil trading career.

As has been mentioned in due course of this article, there are several applications of blockchain technology, and cryptocurrencies, when it comes to reshaping the present, and the future of oil trade. Widespread acceptance of cryptocurrencies as a whole, will only see this process speed up over time.

About the Author:

Michael is an experienced financial trader using Forex, Commodities and Cryptocurrencies. In addition to trading, he runs businesses, trains traders and develops trading technology products. His other passions are boxing and traveling.